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FY 2023-24 Operating Budget in BriefInteractive Story - Click on graphics to explore the data Download as a PDF The balanced budget for Fiscal Year 2023-24 supports Council's mission to lead the preservation and evolution of the City of Encinitas and provide innovative services that enhance the quality of life for residents, visitors, and businesses within the community. Total City budget of $118.5 million in expenses funded by $126.4 million in revenue. The General Fund budget is $90.2 million in expenditures funded by $100.4 million in revenue. FY 2023-24 Capital appropriations total $14.2 million. The City has an established financial policy regarding maintaining adequate financial reserves, and this budget ensures that the Council's reserve policy is met. The General Fund contingency reserve is fully funded at 20 percent of operating expenditures ($18.0 million). The budget stabilization reserve is fully funded at two percent of revenue ($2.0 million). The FY 2023-24 General Fund unassigned ending fund balance is projected to be $1.0 million on June 30, 2024. $126,373,402.00 Revenues in 2024 General Fund Other ESD Operatio... Internal Ser... CSD Operatio... Infrastructu... $118,451,431.66 Expenses in 2024 General Fund Other Lighting and... CSD Operatio... Debt Service... Internal Ser... Budget in Brief Fiscal Year 2023-24 Operating and Capital Budgets Estimated Revenues by Fund All Funds - excludes transfers Proposed Expenditures by Fund All Funds - excludes transfers Community Profile About Encinitas The City of Encinitas was incorporated in October 1986 as a general law city, bringing together the communities of New and Old Encinitas, Cardiff-by- the-Sea, Leucadia, and Olivenhain. Encinitas is located in northern San Diego County approximately 25 miles north of downtown San Diego on the Southern California coast. The City with an estimated population of 62,000 covers approximately 21 square miles and is predominately residential with two major commercial corridors. Demographics The population (as of January 1) has remained relatively stable over the last ten years. A dip occurred in 2009 during the Great Recession. Source: State Department of Finance Population Estimates (E-1) The median household income in Encinitas has grown steady over the last 20 years. The 2020 dip was due to the COVID pandemic as many businesses were temporarily closed. Source: 2020 Census.gov via Datacommons.org The median age has increased slightly over the last ten years. Source: 2020 Census.gov via Datacommons.org 61,085 Demographics in 2024 0 20K 40K 60K 80K 1996 2010 2024 120,488 Demographics in 2021 0 50K 100K 150K 2013 2017 2021 43 Demographics in 2021 0 10 20 30 40 50 2013 2017 2021 City Population Median Income Median Age Elected Officials The City is governed by a City Council consisting of a mayor and four council members under the Council- Manager form of government. The City Council acts as the Board of Directors for the San Dieguito Water District, the Encinitas Housing Authority, and the Encinitas Public Financing Authority. Operating Budget Strategic Planning Framework An effective budget process establishes broad goals to guide government decision making. On February 14, 2023, the City Council selected the following elements to include as the categories for its highest priorities in 2023-2024: Environmental Health & Leadership Engagement & Education Mobility & Alternate Modes Fiscal Stewardship & Effective City Services Housing & Affordability Evolving & Preserving Community Character Budget Preparation The budget process also should incorporate a long-term perspective and promote effective communication with stakeholders. On November 16, 2022, City Council approved the creation of a new seven-member Infrastructure Task Force that will meet bi-monthly from January 2023 through January 2024, culminating in a final report to the City Council in February/March 2024. Their recommendations on project needs, prioritization, and funding will inform preparation of the FY 2024-25 budget. Budget Workshops, offering opportunities for the public to provide input on budget priorities, were held at a special Council meetings on March 15 and April 19, 2023. During the workshops, staff presented the five-year financial forecast for the General Fund, and Council provided direction on the City's Capital Improvement Program including prioritization, timelines and project funding. Budget Priorities The Budget reflects City Council’s budget priorities to address needed capital improvement projects and provide critical services to the community. On May 24, 2023, staff introduced the proposed FY 2023-24 operating budget and CIP for review, public input, and Council direction. On June 21, 2023, staff recommended adoption of the proposed operating and CIP budgets with Resolution 2023-47. The Budget reflects the Council’s direction to fund the following significant programs and projects: $250K Citywide Rail Corridor Quiet Zone Analysis and Permitting; $250K Storm Drain Repair, doubles annual funding to $500K; $375K Leucadia At-Grade Crossing Design and Environmental (Grandview/Hillcrest and Glaucus); $500K Santa Fe Drive Corridor Improvements (East Construction) Grant funded Project; $240K Annual Street Overlay Paving Project - Add Streets (Rodney, Turner, Shields); $311K Design New La Costa Ped Path - Vulcan to I-5; and $250K Encinitas Habitat Stewardship Program (Net $0 administrative change moving budget detail from the Parks operating budget to a Work Project in the CIP budget, includes $150K increase directed during budget workshops). In addition to these much-needed CIP projects, the budget includes: $485K Pacific View Startup: Furniture & Fixtures, part-time Arts Coordinator (0.75) to FTE, part-time Facilities Specialist (0.75) to FTE; $75K E-Bike/Bicycle Safety Training with School Districts; $0K Zero Waste Administrator (New FTE); $0K Sustainability Management Analyst (New FTE); $0K Lifeguards (2 New FTE); $132K Marine Safety Lieutenant (New FTE); $137K Housing Management Analyst (New FTE); $155K Fire Administrative Training Captain (New FTE); $150K Mobility Manager (New FTE); and $330K Fire Apparatus Replacement Fund for 2023 Stock Pumper and 2023 Pierce Triple Enforcer fire engine leases. All Funds The following interactive graph summarizes revenue and expense trends by showing actuals for two prior fiscal years, the current year original budget, and the proposed budget. Interfund transfers are not included. Use the filter to drill into different funds. Click on the column to see revenues by source or expenditures by type. Use the Back or Reset buttons to return to the original graph. Clicking pie graphs opens a new browser tab that can be closed after exploring the data. Updated On 29 Nov, 2023 Reset Broken down by Types History Funds  Visualization FY21 Actual FY22 Actual FY23 Original Budget FY23 Revised Budget FY24 Proposed Budget Fiscal Year 0.0 50.0M 100.0M DollarsBack Revenues Expenses Sort By Chart of Accounts   Category 2024 Taxes $92,207,965.00 Charges for Services $17,375,927.00 Intergovernmental $9,008,111.00 Other Revenue $5,450,781.00 Use of Money/Property $1,684,618.00 Other $646,000.00 Category 2024 Fire and Marine Safety $20,881,415.00 Law Enforcement (contract)$17,965,449.00 City Manager's Office $13,075,383.00 Development Services $12,892,641.00 Public Works $12,707,271.00 Other $40,929,272.66 Major Revenues by Source All Funds - excludes transfers Major Expenditures by Department All Funds - excludes transfers Services Provided by Each Department Administrative Services - Manages safety programs, insurance, claims, attorney contracts and ongoing litigation. Coordinates budget for City Attorney. City Attorney - Represents the City of Encinitas and the San Dieguito Water District. The City Attorney advises the City Council, City Departments and City Commissions regarding legal matters of concern to the City and its operations. City Council - The governing body of the City. The role of the Mayor and City Council is to determine policy for the City. City Manager's Office - Responsible for the administration and oversight of the City organization, including the hiring of the City's workforce, supervising City departments, and ensuring that the City Council's priorities are met. City Clerk - Responsible for coordinating the legislative process including agenda management, administering city elections, and records management. Development Services - Contributes to City Council's vision for community planning to maintain safe and livable communities through well-maintained infrastructure and facilities, strong public safety, and significant environmental standards while achieving diverse and affordable housing for present and future generations. Engineering - Responsible for the comprehensive oversight of major City infrastructure projects, transportation network and other initiatives. Finance - Manages the City's fiscal resources to protect and enhance the City's financial position. Fire & Marine Safety - Provides a wide array of public safety services including fire protection, emergency response, medical aid, fire prevention, disaster preparedness, search and rescue, beach lifeguard services and community education programs. Human Resources - Responsible for recruitment and onboarding new employees, benefits administration, employee development, labor relations, organization and workforce planning, and policy development. Information Technology - Provides innovative and secure technical solutions and support that promote efficient delivery of public service. Law Enforcement - Services are provided through the City's contract with the San Diego County Sheriff. The Station Captain serves as th City's Chief of Police. Non-Departmental and Debt Service - Created to appropriate funds for those activities beneficial on a citywide basis and not directly chargeable to any one department or division. Parks, Recreation, and Cultural Arts - Responsible for recreation and arts programs, maintenance of recreational areas, public art streetscapes, animal services, Commission support, and oversight of the Encinitas Ranch Golf Authority. Public Works - Provides street, public right of way, and above ground stormwater system maintenance and manages the City's facilities, vehicle fleet, and heavy equipment. Utilities - The San Dieguito Water District provides potable (drinking) water services. The Encinitas Wastewater Collection Division provides sewer maintenance and operation services. General Fund The General Fund is the City’s primary operating fund. It accounts for basic services such as public safety, public works, planning and development, park and street maintenance, and code enforcement, along with the administrative services required to support these programs. The FY 2023-24 Proposed Budget for the General Fund includes: Estimated revenues of $100.4 million Proposed operating expenditures of $90.2 million Proposed capital expenditures of $3.8 million (transfers out to CIP budget) Debt service payments of $5.2 million (transfers out to debt funds) Policy-directed budget stabilization reserves (two percent of revenue, $2.0 million) and contingency reserves (20 percent of expenditures, $18.0 million), and Projected General Fund unassigned ending fund balance of $1.0 million for June 30, 2024. Updated On 29 Nov, 2023 Reset Broken down by Types General Fund History  Visualization FY21 Actual FY22 Actual FY23 Original Budget FY23 Revised Budget FY24 Proposed Budget Fiscal Year 0.0 100.0M 50.0M DollarsBack Revenues Expenses Sort By Chart of Accounts   Where does the money come from?How is the money is spent? General Fund revenue primarily composed of property tax, sales tax, and transient occupancy tax. Nearly 88 percent of General Fund revenue is generated from taxes. Municipalities group similar expenses by type or category to facilitate budget presentation, monitoring, and reporting. The top three categories represent over 99 percent of the total General Fund expenditures. Category 2024 Taxes $88,108,000.00 Charges for Services $9,278,316.00 Use of Money/Property $1,076,800.00 Intergovernmental $808,515.00 Other Revenue $474,000.00 Other $646,000.00 Category 2024 Personnel $47,111,867.00 Contracts & Services $40,204,500.00 Materials & Supplies $2,107,000.00 Internal Cost Allocation $538,672.00 Debt/Finance $197,726.00 Other $9,000.00 Revenues by Source General Fund - excludes transfers Expenditures by Type General Fund - excludes transfers $100,391,631.00 Revenues in 2024 Non-Departme... Other City Manager... Fire and Mar... Parks Recrea... Development ... $90,168,765.00 Expenses in 2024 Fire and Mar... Law Enforcem... Development ... Other Public Works Parks Recrea... Staffing Trends The number of employees is measured in full-time equivalent (FTE) units. One FTE works 2,080 hours per year. The City’s employee count totaled 238.15 FTE on July 1, 2022. A new Homeless Services Manager position was approved offcycle on November 16, 2022 bringing the FY 2022-23 total to 239.15 FTE (excluding San Dieguito Water District personnel). For FY 2023-24, staff is proposing personnel adjustments that increase the number of City employees by 9.25 FTEs to 248.40 FTE. The proposed budget includes personnel adjustments discussed at the Budget Workshops held March 15 and April 19, 2023, which support Council strategic priorities and provide: Housing and Affordability - required monitoring and site inspections for existing and new Affordable Housing Units related to Housing Element site development Environmental Health and Leadership / Engagement and Education - assistance with ongoing implementation of Climate Action Plan (CAP) measures, supported by CAP fee revenue; and compliance with organic waste requirements mandated by State SB 1383 and Zero Waste Strategy adopted in the City’s CAP, supported by franchise fee revenue. Evolving and Preserving Community Character - start-up staffing for Pacific View Facilities maintenance and arts program. Mobility and Alternate Modes / Engagement and Education - new Mobility Manager in Parks, Recreation, and Cultural Arts Fiscal Stewardship and Effective City Services - cooperative Fire Department coordination of multi- jurisdictional annual training requirements—including fire suppression and emergency medical training/testing—partially supported by Cooperative Management Services Agreement revenue; and increased marine safety supervision from four-day to seven-day coverage, along with improved lifeguard recruitment and retention by converting some part-time hours to full-time staff. The tables below summarize five years of FTE changes, along with position-level details. Revenue by Department General Fund - excludes transfers Expenditures by Department General Fund - excludes transfers Capital Improvement Program (CIP) $14,237,392.00 Type in 2024 Streets and Rail Cor... Other Facilities Mobility Improvement... Parks and Beaches Wastewater Encinitas monitors and improves City infrastructure including roads, sidewalks, drainage systems, trails, and parks. City Projects are prioritized in strategies laid out by Council's Strategic Plan. While most capital projects are managed by the Engineering Department, the CIP plan also includes facilities, parks and beach projects, and multi-year studies (work projects) managed by other departments. The proposed plan through FY 2027-28 contains $58.0 million in capital improvement/work projects over the next five years. Of the five-year total, $14.2 million is programmed for FY 2023-24. The proposed FY 2023-24 capital budget includes $3.8 million from the General Fund, with all other funds totaling $10.4 million. Funding for projects is provided by existing fund balance, future projected cash flows, and loan proceeds. Projects shown in future years are programmed into the CIP plan and are not funded until each subsequent budget adoption. Each year the CIP and Traffic Engineering teams execute a Work Plan based on funded projects. A list of current CIP Projects by Status is available on the City's website. Category 2024 101 - General Fund $3,811,744.00 522 - Encinitas Sanitary Div $2,600,229.00 211 - TransNet $2,105,000.00 201 - State Gasoline Taxes $2,059,255.00 512 - Cardiff Sanitary Div $1,625,000.00 Other $2,036,164.00 Category 2024 Annual Street Overlay $2,105,000.00 Annual Street Overlay - RMRA …$1,520,665.00 CIPs at Encina $1,300,229.00 Santa Fe Drive Corridor Improv…$753,672.00 Olivenhain Trunk Sewer Improv…$700,000.00 Other $7,857,826.00 Powered by OpenGov CIP by Type Totals show funding appropriated in FY24 only. Chart does not reflect budget carryforward for projects still in progress. Data Updated Aug 03, 2023, 9:22 PM CIP by Funding Source The General Fund transferred $3.8 million to capital projects in FY24. CIP by Project Projects funded in prior years (like Pacific View) do not appear in this chart.